Core Viewpoint - The recent criminal measures taken against two senior executives of Ruiskanda (603803.SH) highlight the escalating accountability in the aftermath of the "special network communication" fraud case, which has severely impacted the company's financial health and market perception [1][6][7]. Company Overview - Ruiskanda is a provider of optical network products and system solutions, with operations in various fields including all-optical networks, switching routing, cloud network security integration, wireless communication, and edge computing [9]. Legal and Regulatory Actions - On July 7, 2025, Ruiskanda announced that its chairman and general manager, Li Yuejie, and director Zhu Chuncheng were taken into criminal custody for suspected violations related to the disclosure of important information, linked to a prior administrative penalty from the China Securities Regulatory Commission (CSRC) in September 2023 [1][2][6]. - The CSRC's 2023 administrative penalty revealed that Ruiskanda had inflated its revenue by over 630 million yuan and profits by over 110 million yuan from 2019 to 2020 through false self-circulation transactions [6][7]. Financial Performance - The company's financial performance has deteriorated significantly, with cumulative losses reaching 1.054 billion yuan from 2021 to 2024. Revenue figures for these years were 1.853 billion yuan, 2.156 billion yuan, 1.626 billion yuan, and 1.382 billion yuan, indicating a declining trend [10][11]. - In Q1 2025, Ruiskanda reported a revenue of 250 million yuan, a year-on-year decline of 34.89%, and a net profit loss of 19 million yuan, marking a staggering year-on-year drop of 195.18% [10]. Market Reaction - Following the announcement of the criminal measures against the executives, Ruiskanda's stock price plummeted, hitting the daily limit down on July 8, 2025, closing at 8.6 yuan per share. This represented a significant market reaction, with a net outflow of 38.65 million yuan in a single day, the highest for the year [11][12]. - Notably, the stock had previously surged over 300% from March to December 2024, despite the underlying financial struggles [11]. Executive Compensation - Despite the ongoing financial decline, the compensation for the implicated executives remained high, with each receiving approximately 1.25 million yuan annually from 2021 to 2024, totaling around 10 million yuan over four years [11].

Core Viewpoint - The article discusses the recent developments surrounding the company 瑞斯康达, which is embroiled in a significant scandal known as the "largest fraud in A-shares history," linked to the "专网通信案" that has affected multiple listed companies and involved over 90 billion yuan [2][12][15]. Group 1: Incident Overview - On July 7, 瑞斯康达 announced that its chairman and general manager, 李月杰, and board member 朱春城, were subjected to criminal coercive measures due to allegations of violating disclosure regulations [4][11]. - Following the announcement, 瑞斯康达's stock price plummeted to a "limit down," with a market value reduction to 3.654 billion yuan [4][8]. - The criminal actions are linked to the same issues that led to administrative penalties from the China Securities Regulatory Commission (CSRC) in September 2023 [11][12]. Group 2: Company Background - 瑞斯康达, established in 1999, operates in the telecommunications sector, providing infrastructure construction and digital transformation solutions [9]. - The company’s product offerings include various communication devices and solutions, such as OTN equipment, 4G/5G base stations, and smart home gateways [9]. Group 3: Financial Performance - The company has faced declining performance, with a reported revenue of 1.382 billion yuan for 2024, a year-on-year decrease of 14.99%, and a net loss of 122 million yuan [9]. - In Q1 2025, 瑞斯康达's revenue further declined to 250 million yuan, down 34.89% year-on-year, with another net loss of 19 million yuan [9]. Group 4: Fraud Case Details - The "专网通信案" involved fictitious business operations leading to financial fraud, impacting numerous companies and resulting in significant financial losses [12][15]. - 瑞斯康达 was found to have inflated its revenue by over 630 million yuan and profits by over 110 million yuan from 2019 to 2020 due to its involvement in this fraudulent scheme [12][15]. - The case has been described as a major scandal in the A-share market, with total losses exceeding 90 billion yuan across affected companies [15][16].

Core Viewpoint - The article discusses the legal issues faced by Ruiskanda Technology Development Co., Ltd. due to violations related to information disclosure, leading to criminal measures against key executives and a significant impact on the company's operations and stock performance [1][7][10]. Company Overview - Ruiskanda was founded on June 8, 1999, and is headquartered in Beijing, specializing in the manufacturing and development of communication equipment and software [4]. - The company primarily engages in the research, production, and sales of transmission and broadband network equipment, as well as software products and technical services [4]. Recent Developments - On July 5, 2025, the company announced that its Chairman and General Manager, Li Yuejie, and Director Zhu Chuncheng were subjected to criminal measures for suspected violations of important information disclosure laws [1]. - In the absence of Li Yuejie, Vice General Manager Han Meng has been appointed to act as Chairman and General Manager [1]. Financial Performance - As of the end of 2024, Li Yuejie and Zhu Chuncheng each held 38,693,251 shares, with an annual salary of 1.2489 million yuan [5][6]. - As of July 7, 2025, Ruiskanda's stock price was 9.55 yuan, reflecting a decline of 2.45%, with a total market capitalization of 4.1 billion yuan [6]. Legal and Regulatory Issues - The legal issues stem from a previous administrative penalty by the China Securities Regulatory Commission (CSRC) in September 2023, which imposed a fine of 2 million yuan on Ruiskanda for information disclosure violations [7][9]. - The violations are linked to the "special network communication case," which involved inflated financial reports from 2019 to 2020, with reported inflated revenues of 351 million yuan and 281 million yuan for those years, respectively [9][10]. Business Model Concerns - Ruiskanda's subsidiary, Beijing Deep Blue Xun Tong Technology Co., Ltd., was involved in a controversial business model that provided funding for upstream suppliers while misrepresenting its financial health [8][9]. - This model has been criticized as a "false self-circulation business" and has led to significant scrutiny and penalties for multiple companies involved in similar practices since 2021 [10]. Industry Context - The "special network communication case" has been described as one of the largest frauds in A-shares, with cumulative penalties exceeding 90 billion yuan across multiple companies [10]. - Ruiskanda's recent financial performance has been declining, with a reported revenue of 1.382 billion yuan in 2024, a year-on-year decrease of 14.99%, and a net loss of 122 million yuan [10].

Core Viewpoint - ST Hongda (宏达新材) continues to face repercussions from the "special network communication" case, leading to its designation as a dishonest executor due to unpaid debts and ongoing financial losses [2][4][5]. Group 1: Legal Issues - ST Hongda was declared a dishonest executor by the court due to failure to pay a debt of 42.22 million yuan to Shanghai Hongzi, which was pursued by Shanghai Aoyin Investment [3][4]. - The company has been involved in multiple lawsuits, with 182 cases filed against it, totaling over 22 million yuan, indicating severe legal challenges [5][6]. - The company has submitted a request to suspend execution of the court's orders, but the ongoing legal issues are expected to impact its cash flow and operational stability [4][6]. Group 2: Financial Performance - ST Hongda has reported continuous losses for seven years, with net profits expected to remain negative in 2023 and 2024, and a significant decline in its non-recurring net profit over the past seven years [5][7]. - In Q1 2025, despite a 111.25% increase in revenue to 97.52 million yuan, the net profit dropped by 92.16% to -3.28 million yuan, highlighting ongoing financial distress [7]. - The company's asset-liability ratio reached 94.71%, an increase of 18.37% year-on-year, indicating a precarious financial position [7]. Group 3: Operational Challenges - The company is facing challenges in recovering receivables, particularly from subsidiaries, which have been complicated by ongoing legal disputes [7][8]. - Experts suggest that the company needs to address historical issues, including financial misconduct and contract disputes, to restore market confidence [8]. - Recommendations for improvement include optimizing business structure, enhancing core competitiveness, and potentially bringing in strategic investors to support financial recovery [8].